ICICI Bank 2016 Annual Report Download - page 189

Annual Report 2015-2016 187
Schedules
forming part of the Accounts (Contd.)
Financial Statements of ICICI Bank Limited
45. Small and micro enterprises
Under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which came into force from
October 2, 2006, certain disclosures are required to be made relating to enterprises covered under the Act. During
the year ended March 31, 2016, the amount paid after the due date to vendors registered under the MSMED Act,
2006 was ` 0.4 million (March 31, 2015: ` 4.7 million). An amount of ` 0.01 million (March 31, 2015: ` 0.06 million) has
been charged to prot & loss account towards payment of interest on these delayed payments.
46. Penalties/nes imposed by RBI and other banking regulatory bodies
The penalty imposed by RBI and other banking regulatory bodies during the year ended March 31, 2016 was Nil
(March 31, 2015: ` 10.4 million).
47. Disclosure on Remuneration
Compensation Policy and practices
(A) Qualitative Disclosures
a) Information relating to the bodies that oversee remuneration.
Name, composition and mandate of the main body overseeing remuneration
The Board Governance, Remuneration & Nomination Committee (BGRNC or Committee) is the main body
overseeing remuneration. The BGRNC at March 31, 2016 comprised three independent Directors. The
functions of the Committee include recommendation of appointments of Directors to the Board, evaluation
of the performance of the Wholetime Directors (including the Managing Director & CEO) on predetermined
parameters, recommendation to the Board of the remuneration (including performance bonus and
perquisites) to Wholetime Directors, approval of the policy for and quantum of bonus payable to the
members of the staff, including senior management and key management personnel, framing of guidelines
for the Employees Stock Option Scheme (ESOS) and recommendation of grant of the Bank’s stock options
to employees and WTDs of the Bank and its subsidiary companies.
External consultants whose advice has been sought, the body by which they were commissioned, and in
what areas of the remuneration process
Not Applicable
Scope of the Bank’s remuneration policy (eg. by regions, business lines), including the extent to which it
is applicable to foreign subsidiaries and branches
The Compensation Policy of the Bank, approved by the Board on January 31, 2012, pursuant to the guidelines
issued by RBI, covers all employees of the Bank, including those in overseas branches of the Bank. In addition
to the Bank’s Compensation Policy guidelines, the overseas branches also adhere to relevant local regulations.
Type of employees covered and number of such employees
All employees of the Bank are governed by the Compensation Policy. The total number of permanent
employees of the Bank at March 31, 2016 was 72,175.
b) Information relating to the design and structure of remuneration processes.
Key features and objectives of remuneration policy
The Bank has under the guidance of the Board and the BGRNC, followed compensation practices intended to
drive meritocracy within the framework of prudent risk management. This approach has been incorporated
in the Compensation Policy, the key elements of which are given below.
Effective governance of compensation: The BGRNC has oversight over compensation. The Committee
denes Key Performance Indicators (KPIs) for Wholetime Directors and equivalent positions and the
organisational performance norms for bonus based on the nancial and strategic plan approved by the
Board. The KPIs include both quantitative and qualitative aspects. The BGRNC assesses organisational
performance as well as the individual performance for Wholetime Directors and equivalent positions.
Based on its assessment, it makes recommendations to the Board regarding compensation for Wholetime